The plan currently being considered in Congress would increase taxes on all tobacco and nicotine products.
The Tobacco Tax Equity Act currently being considered in Congress would increase taxes on all tobacco and nicotine products to raise revenue for President Joe Biden’s proposed $3.5 trillion reconciliation bill.
The proposed tax increase attempts to equalize the taxes on all nicotine products—regardless of their risk, use patterns, or approval by the Food and Drug Administration. Taxes on combustible cigarettes would double to $2 per pack under the bill’s current form. The tax on dipping tobacco, roll-your-own tobacco, and pipe tobacco would rise by 2,023 percent, 100 percent, and 1,651 percent, respectively.
Vapor products, which are not currently taxed at the federal level, would be taxed at a rate of $100.66 per 1,810 mg of nicotine to align them with taxes on traditional cigarettes.
Guy Bentley – Reason – 2021-10-08.
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